Insert the information in the form and the calculator will determine the net operating income.

What is the net operating income?

The net operating income is one of the most important calculations in the real estate industry. NIO measures the taxes. it is also used to measure the coverage ratio, debt service and return on investment.

How to calculate net operating income?

To calculate net operating income you should use the following formula:
net operating income = gross operating income - operating expenses

example: Jane has a condo building that she is renting out and it has the following information:

revenue: renta income = $34,000
laundry machines = $8,000
parking fees = $2,700
operating expenses:
property taxes = $7,500
property management fees = $1,800
insurance = $1,700
repair and maintenance = $4,600
calculate the net operating income?

First we should calculate the gorss operating income and the operating expenses.
gross operaint income = $34,000 + $8,000 + $2,700
gross operaint income = $44,700
operating expenses = $7,500 + $1,800 + $1,700 + $4,600
operating expenses = $15,600
Now let's calculate the net operating income:
net operating income = gross operating income + operating expenses
net operating income = $44,700 + $15,600
net operating income = $60,300

Why use net operating income?

The net operatin income (NOI) is used to find how much money a property earns after accounting for all operating expenses. Also note that NOI doesn't account for the cost of mortgage.